Utility consultants to the Turnbull administration said Monday night that the cash-strapped government could realize an infusion of at least $200 million in cash if it enters into a "joint-venture" with Southern Energy to own and operate the Water and Power Authority.
The latest figure — higher than earlier estimates — was among the details that emerged at a town meeting sponsored by the Democratic Committee of the Virgin Islands at the Palms Court Harbourview hotel.
PricewaterhouseCoopers consultant Johan Van't Hof, who negotiated the deal with Southern Energy on behalf of the government, made a detailed presentation on various aspects of the proposed agreement, including the bases on which electric and water rates would increase and how ownership of WAPA would be divided between Southern and the government.
It was noted that, in addition to Senate approval, the proposal is contingent on assurance from Hovensa that it will continue its present practice of providing fuel oil at reduced rates to the utility, to be called Virgin Islands Electric and Water.
Also pending, and also crucial to the deal, Van't Hof said, is word from the Federal Emergency Management Agency on whether the joint venture would be eligible for FEMA assistance in the aftermath of a natural disaster.
In brief remarks, Gov. Charles Turnbull told those present that he had asked the administration's negotiating team to get the "best possible deal" with Southern Energy and he believes it has done so. The arrangement would "create the initial steps needed to getting us out of the financial wilderness we are now in," he said.
Presenters said they expect the agreement to be concluded by the end of April. A lengthy question-and-answer period followed the presentations. The Democratic Committee held its first informational forum Sunday on St. John. A third is scheduled on St. Croix Tuesday at 7 p.m. at the Mid-Lands Restaurant.
